Income Sources, Poverty, and Forest Encroachment: Implications for Rural Development Policies in Central Sulawesi, Indonesia

This paper analyses the determinants of income generating activities of rural households in the vicinity of the Lore-Lindu National Park in Central Sulawesi, Indonesia. The focus is on activities which threaten the integrity of the national park (perennial crop production and sale of forest products) and on non-agricultural activities (wage labour and self-employment) which are able to reduce poverty without threatening the national park. The analysis allows to identify factors which are essentially for the design of policies and programmes aiming to promote rural development and to protect the national park. Perennial crop production and activities outside the agricultural sector are particularly important for the less-poor households, whereas the selling of forest products is especially important for the poorest households. The econometric analysis shows that the possession of irrigated land, the access to social capital, and the participation in formal credit markets positively influences perennial crop production, which is a major source of deforestation. The possession of irrigated land, education, and the access to road infrastructure have a negative influence on the sale of forest products which are mainly collected inside the national park. A key factor influencing income from non-agricultural wage labour is the level of education. Policy conclusions with respect to poverty alleviation and protection of the national park are drawn.Community/Rural/Urban Development,

Carbon Finance Schemes - Incentives for Forest and Agroforestry Systems

Deforestation contributes a quarter of all anthropogenic greenhouse gas emissions. On the island of Sulawesi in the vicinity of the Lore Lindu National Park, smallholders contribute to deforestation processes with their agricultural practices, specifically with cocoa plantations. This study assesses the impact of carbon sequestration payments for forest management systems on the prevailing land use systems. Additionally, the level of incentives which induces farmers to adopt sustainable agroforestry practices is determined. We show that low carbon credit prices have a small impact on household income. However, with rising prices, the poorest households can realise an increase of 18 percent. The majority of the households have an incentive to adopt the more sustainable shade intensive agroforestry system and stop deforestation activities with prices observed on markets. The cost-efficiency of avoided deforestation, compared to biofuels, is demonstrated. The study shows that forestry activities provide an important opportunity as climate mitigation strategies

Could carbon payments be a solution to deforestation? Empirical evidence from Indonesia

Up to 25 percent of all anthropogenic greenhouse gas emissions are caused by deforestation, and Indonesia is the third largest emitter worldwide due to land use change and deforestation. On the island of Sulawesi in the vicinity of the Lore Lindu National Park, smallholders contribute to conversion processes at the forest margin as a result of their agricultural practices. Specifically the area dedicated to cocoa plantations has increased from zero in 1979 to nearly 18,000 hectares in 2001. Some of these plots have been established inside the 220,000 hectares of the National Park. An intensification process is observed with a consequent reduction of the shade tree density. This study focuses on the impact of carbon sequestration payments for forest management systems on smallholder households. The level of incentives is determined which motivates farmers to desist from further deforestation and land use intensification activities. Household behaviour and resource allocation is analysed with a comparative static linear programming model. As these models prove to be a reliable tool for policy analysis, the output can indicate the adjustments in resource allocation and land use shifts when introducing compensation payments. The data was collected in a household survey in six villages around the Lore Lindu National Park. Four household categories were identified according to their dominant agroforestry systems. With carbon credit prices up to €32 tCO2e-1 an incentive can be provided for the majority of the households to adopt the more sustainable shade intensive agroforestry systems. The results show that with current carbon prices the deforestation activities of the majority of households could be stopped. A win-win situation seems to appear, whereby, when targeting only the shade intensive agroforestry systems with carbon payments, the poorest households economically benefit the most, the vicious circle of deforestation can be interrupted and land use systems with high environmental benefits are promoted.Payments for Environmental Services, Avoided Deforestation, Linear Programming, Resource /Energy Economics and Policy,

Payments for environmental services : incentives through carbon sequestration compensation for cocoa-based agroforestry systems in Central Sulawesi, Indonesia

Up to 25 percent of all anthropogenic greenhouse gas emissions are caused by deforestation, and Indonesia is the third largest greenhouse gas emitter worldwide due to land use change and deforestation. On the island of Sulawesi in the vicinity of the Lore Lindu National Park (LLNP), many smallholders contribute to conversion processes at the forest margin as a result of their agricultural practices. Specifically the area dedicated to cocoa plantations has increased from zero (1979) to nearly 18,000 hectares (2001). Some of these plots have been established inside the 220,000 hectares of the LLNP. An intensification process is observed with a consequent reduction of the shade tree density. This study assesses which impact carbon sequestration payments for forest management systems have on the prevailing land use systems. Additionally, the level of incentives is determined which motivates farmers to desist from further deforestation and land use intensification activities. Household behaviour and resource allocation is analysed with a comparative static linear programming model. As these models prove to be a reliable tool for policy analysis, the output can indicate the adjustments in resource allocation and land use shifts when introducing compensation payments. The data was collected in a household survey in six villages around the LLNP. Four household categories are identified according to their dominant agroforestry systems. These range from low intensity management with a high degree of shading to highly intensified shade free systems. At the plot level, the payments from carbon sequestration are the highest for the full shade cocoa agroforestry system, but with low carbon prices of € 5 tCO2e-1 these constitute 5 percent of the cocoa gross margin. Focusing on the household level, however, an increase of up to 18 percent of the total gross margin can be realised. Furthermore, for differentiated carbon prices up to € 32 tCO2e-1 the majority of the households have an incentive to adopt the more sustainable shade intensive agroforestry system. A win-win situation seems to appear, whereby, when targeting only the shade intensive agroforestry systems with carbon payments, the poorest households economically benefit the most and land use systems with high environmental benefits are promoted.payments for environmental services, carbon sequestration, agroforestry systems, cocoa, linear programming, economic incentives, poverty, Environmental Economics and Policy, Land Economics/Use,

Differential Influence of Relative Poverty on Preferences for Ecosystem Services: Evidence from Rural Indonesia

Ecosystem services generate benefits that enter human consumption either directly or indirectly via their contribution to human production activities. In this contribution, we provide evidence that (i) the demand of peasants for ecosystem services in rural Indonesia depends on relative poverty; and that (ii) the type of reaction to poverty depends on the specific relation of the ecosystem services to peasant production and consumption. In early 2005 a representative choice experiment study was conducted in the Lore Lindu area in Central Sulawesi, Indonesia, to quantify regional economic preferences (marginal willingessto- pay: MWTP) for four different ecosystem services (n=249; rattan and water availability, shading in cacao agroforestry, population size of the endemic forest dwelling dwarf buffalo "anoa"). Relative poverty was calculated with the 2005 data using a 0,1-normally distributed relative poverty index developed from a socio-demographic household survey administered to the same sample in 2004. For shading in cocoa, a linearly decreasing trend is observed indicating a stronger preference for "sun-grown" cocoa in the less poor farmers indicating a constant poverty elasticity of WTP. The empirical poverty elasticity for anoa supports its luxury good characteristic only in part. For rattan and water, we find an inverted U-shape relation between MWTP for ecosystem services and relative poverty - probably due to serious restrictions in the ability to pay in the poorest households and a smaller resource dependency in the less poor households. In sum, the relationship between relative poverty and MWTP for ecosystem services appears more complex than classical micro-economic theory admits.Relative poverty, Choice experiment, ecosystem services, environmental valuation, Resource /Energy Economics and Policy, Q21, Q51, Q56, Q57,

Proxy Means Tests for Targeting the Poorest Households -- Applications to Uganda

The motivation for this research stems from increasing interest showed for the issue of targeting. The paper explores the use of proxy means tests to identify the poorest households in Uganda. The set of indicators used in our model includes variables usually available in Living Standard Measurement Surveys (LSMS). Previous researches seeking to develop proxy means tests for poverty most often use Ordinary Least Squares (OLS) as regression method. In addition to the OLS, the paper explores the use of Linear Probability Model, Probit, and Quantile regressions for correctly predicting the household poverty status. A further innovation of this research compared to the existing literature is the use of out-of sample validation tests to assess the predictive power and hence the robustness of the identified set of regressors. Moreover, the confidence intervals are approximated out-of sample using the bootstrap algorithm and the percentile method. The main conclusion that emerges from this research is that measures of absolute poverty estimated with Quantile regression can yield fairly accurate in-sample predictions of absolute poverty in a nationally representative sample. On the other hand, the OLS and Probit perform better out-of sample. Besides it complexity, the Quantile regression is less robust. The Probit may be the best alternative for optimizing both accuracy and robustness of a poverty assessment tool. The best regressor sets and their derived weights can be used in a range of applications, including the identification of the poorest households in the country, the assessment of poverty outreach of Microfinance Institutions (MFIs), and the measurement of poverty and welfare impacts of agricultural development projects. To confirm or reject the conclusions in this paper, future research using datasets from other countries is needed.Uganda, poverty assessment, targeting, proxy means test, out-of-sample test, bootstrap, Consumer/Household Economics, Food Security and Poverty,

How Best to Target the Poor? An operational targeting of the poor using indicator-based proxy means tests

This paper seeks to answer an operational development question: how best to target the poor? In their endeavor, policy makers, program managers, and development practitioners face the daily challenge of targeting policies, projects, and services at the poorer strata of the population. This is also the case for microfinance institutions that seek to estimate the poverty outreach among their clients. This paper addresses these challenges. Using household survey data from Uganda, we estimate four alternative models for improving the identification of the poor in the country. Furthermore, we analyze the model sensitivity to different poverty lines and test their validity using bootstrapped simulation methods. While there is bound to be some errors, no indicator being perfectly correlated with poverty, the models developed achieve fairly accurate out-of-sample predictions of absolute poverty. Furthermore, findings suggest that the estimation method is not relevant for developing a fairly accurate model for targeting the poor. The models developed are potentially useful tools for the development community in Uganda. This research can also be applied in other developing countries.Uganda, poverty assessment, targeting, proxy means tests, validations, bootstrap, Food Security and Poverty,

Developing Poverty Assessment Tools Based on Principal Component Analysis: Results from Bangladesh, Kazakhstan, Uganda, and Peru

Developing accurate, yet operational poverty assessment tools to target the poorest households remains a challenge for applied policy research. This paper aims to develop poverty assessment tools for four countries: Bangladesh, Peru, Uganda, and Kazakhstan. The research applies the Principal Component Analysis (PCA) to seek the best set of variables that predict the household poverty status using easily measurable socio-economic indicators. Out of sample validations tests are performed to assess the prediction power of a tool. Finally, the PCA results are compared with those obtained from regressions models. In-sample estimation results suggest that the Quantile regression technique is the first best method in all four countries, except Kazakhstan. The PCA method is the second best technique for two of the countries. In comparison with regression techniques, PCA models accurately predict a large percentage of households. With regard to out-of sample validations, there is no clear trend; neither the PCA method nor the Quantile regression consistently yields the most robust results. The results highlight the need to assess the out-of-sample performance and thereby the robustness of a poverty assessment tool in estimating the poverty status of a new sample. We conclude that measures of relative poverty estimated with PCA method can yield fairly accurate, but not so robust predictions of absolute poverty as compared to more complex regression models.poverty assessment, targeting, principal component analysis, Bangladesh, Peru, Kazakhstan, Uganda, Food Security and Poverty, H5, Q14, I3,

Payments for environmental services : incentives through carbon sequestration compensation for cocoa-based agroforestry systems in Central Sulawesi, Indonesia

Up to 25 percent of all anthropogenic greenhouse gas emissions are caused by deforestation, and Indonesia is the third largest greenhouse gas emitter worldwide due to land use change and deforestation. On the island of Sulawesi in the vicinity of the Lore Lindu National Park (LLNP), many smallholders contribute to conversion processes at the forest margin as a result of their agricultural practices. Specifically the area dedicated to cocoa plantations has increased from zero (1979) to nearly 18,000 hectares (2001). Some of these plots have been established inside the 220,000 hectares of the LLNP. An intensification process is observed with a consequent reduction of the shade tree density. This study assesses which impact carbon sequestration payments for forest management systems have on the prevailing land use systems. Additionally, the level of incentives is determined which motivates farmers to desist from further deforestation and land use intensification activities. Household behaviour and resource allocation is analysed with a comparative static linear programming model. As these models prove to be a reliable tool for policy analysis, the output can indicate the adjustments in resource allocation and land use shifts when introducing compensation payments. The data was collected in a household survey in six villages around the LLNP. Four household categories are identified according to their dominant agroforestry systems. These range from low intensity management with a high degree of shading to highly intensified shade free systems. At the plot level, the payments from carbon sequestration are the highest for the full shade cocoa agroforestry system, but with low carbon prices of ? 5 tCO2e-1 these constitute 5 percent of the cocoa gross margin. Focusing on the household level, however, an increase of up to 18 percent of the total gross margin can be realised. Furthermore, for differentiated carbon prices up to ? 32 tCO2e-1 the majority of the households have an incentive to adopt the more sustainable shade intensive agroforestry system. A win-win situation seems to appear, whereby, when targeting only the shade intensive agroforestry systems with carbon payments, the poorest households economically benefit the most and land use systems with high environmental benefits are promoted

Lifetime reduction of surface states at Cu, Ag and Au(111) caused by impurity scattering

We present density-functional results on the lifetime of the (111) surface state of the noble metals. We consider scattering on the Fermi surface caused by impurity atoms belonging to the 3d and 4sp series. The results are analyzed with respect to film thickness and with respect to separation of scattering into bulk or into surface states. While for impurities in the surface layer the overall trends are similar to the long-known bulk-state scattering, for adatom-induced scattering we find a surprising behavior with respect to the adatom atomic number. A plateau emerges in the scattering rate of the 3d adatoms, instead of a peak characteristic of the d resonance. Additionally, the scattering rate of 4sp adatoms changes in a zig-zag pattern, contrary to a smooth parabolic increase following Linde's rule that is observed in bulk. We interpret these results in terms of the weaker charge-screening and of interference effects induced by the lowering of symmetry at the surface